Rising interest rates and fall in equity markets have given opportunities to fund managers to shuffle their portfolios. Any such changes can lead to a change in the risk-o-meters of schemes.
Canara Robeco AMC has launched the Canara Robeco Banking & PSU Debt Fund – a category that has disappointed over the past year. Fund managers like Avnish Jain say things are going to turn around for the category pretty soon.
The market share of the top seven or eight AMCs in pure equity has dropped to 46 percent, which the brokerage say is the lowest in four to five years
Fixed income funds or debt funds are typically used to reduce volatility in your portfolio. That doesn’t mean that your returns are guaranteed. There’s a big difference
The cases pertain to an inspection carried out on inter-scheme transfer for the period August 2018 to February 2019. Sebi fined the AMC Rs 25 lakh, CEO Ajit Menon Rs 5 lakh, and three fund managers for Rs 2 lakh each
Investors are looking for a high coupon and possible capital gains over the medium term. If interest rates do not move up much or move sideways before coming off the peak, then these investors may make decent gains over the medium term. But there are risks.
Investing your hard-earned money in fixed income space is a tough call, given the anticipation of higher interest rates going forward
The AMC has seen sustained outflows from debt schemes over the last five years.
Returns from debt mutual funds have been muted for some time, but in the process, the accrual level has been moving up, which makes it relatively that much attractive.
Arbitrage Funds: Though these schemes work better with a timeframe of at least one year, investors are looking at it for the very short term, typically up to three months.
Debt funds invest in fixed-income generating instruments like corporate bonds, government bonds, treasury bills, commercial papers, certificates of deposit, and other market securities
From risk boundaries to provisioning for sudden withdrawals, the regulator has made debt funds safer in the past two years. But that doesn’t mean debt funds are risk-free.
Having returned to investors nearly all the money stuck in the six debt funds it unceremoniously wound up two years ago, Franklin Templeton is looking to win back investors and distributors. It’s not going to be easy.
Divide the corpus into two buckets – one, to meet short-term needs through investment in debt funds, and the other to help grow the corpus through investments in a variety of instruments including equity.
Don’t touch your existing debt funds, say financial planners. But if you want to invest incremental money, deploy slowly
While picking funds, make sure you choose schemes across categories to combine portfolios of different maturities
Debt scheme investors usually look for return predictability, and this is what these passive bond funds aim to offer